Expert: Ed McFarland - 5/25/2004

Question
The state of Fla. requires contractors to either obtain workmans comp or become a corp to be exempt-------------------------
Followup To
Question -
My husband has recently changed from a sole proprietorship to a s-corp. We have hired a payroll service to do paychecks for my husband. He is the only officer. So far it has been very expensive. Is there another way that he can be payed such as draws? What would the tax liability be?
Answer -
Why did you change from a sole proprietorship to a "S" Corp?

What do you mean by being very expensive for the payroll service? If you intend to add employees, getting the relationship started will make it easier.

Answer
If the reason you changed is to avoid the cost of worker's comp, I would go to either a CPA or lawyer that specializes in your business and get organized.

This seems that you are either doing this on your own or with somebody not very experienced with these issues. The personal liabilty does not go away because you are a "S" Corp.